Weekly Roundup – Week of 3.6.2023
March 10, 2023
This week’s roundup highlights current food and beverage-related news curated by our team of strategists and food enthusiasts:
Manufacturers Are Leveraging The Air Fryer Phenomenon
Nearly 60% of U.S. households own an air fryer, according to Adam Graves, president of Nestle U.S.’s pizza and snacking division. Ease and speed are the main reasons consumers are continually turning to air fryers for quick meals in minutes. Food manufacturers such as Nestle, Kraft Heinz, and Tyson are capitalizing on this trend by adding air fryer instructions to their frozen food packaging and online recipes. According to the NPD Group, these portable convection ovens are on their way to joining the microwave as a staple in U.S. kitchens. In fact, in 2022, the air fryer leapfrogged over grills and multicookers to become the No. 4 cooking appliance. Read More.
Cyberattacks Creating Disruption In the Food Industry
Over the last several years, cyberattacks have wreaked havoc on large food companies resulting in profit loss and hefty ransomware payments. Most recently, Dole had to pause production and delay shipments in North America due to a ransomware cybersecurity incident. Yum! Brands also experienced a security breach closing roughly 300 restaurants in the U.K. confirming that data was stolen from its network. And JBS, the world’s largest meat processor paid an $11m ransom to end a cyberattack. Brian Schnese, a former FBI Special Agent, explained, “Because businesses in the food industry rely on a supply chain, cyberattacks can create a massive disruption.” Learn More.
New Jobs and Technology Expected To Reboot The Foodservice Industry
In the Food Business News article, the National Restaurant Association indicated that the foodservice industry is expected to generate $997 billion in sales and see 150,000 jobs added to the industry annually through 2030. Still, employment recruitment and employee retention will remain a challenge for operators. To help combat this, the NRA reported that 58% [of operators] expect to see more technology and automation used to fill the gaps in labor shortages. Furthermore, many operators will invest in AI technology for product development, to increase productivity, and streamline ordering and payment operations. Read the Full Article.
Ease And Convenience Are Influencing Where Consumers Shop
While deal-seekers make up 44% of all U.S. consumers, according to a report by PYMNTS, shoppers are also being influenced by other factors such as pickup, delivery, and similar conveniences which can, in turn, drive customer loyalty. PYMNTS calls this group “persuadables” – they’re attracted to lower prices as well as stores that provide an easier and more convenient shopping experience. Bank of America Senior Vice President of Product Management Nicolle Wilson tells PYMNTS, “Customers enjoy the flexibility of getting goods however best suits them that day, and merchants have seen an increase in customer loyalty.” Get The Story.
New Beverages Refresh The Category
The beverage industry has experienced continued growth in the popularity of both ready-to-drink cocktails and better-for-you beverages, and two brands are leveraging these trends with new product launches. SunnyD, a nostalgic brand known for its tangy orange juice-like flavor, is getting into the ready-to-drink cocktail business with the launch of SunnyD Vodka Seltzer. Due to consumer demand and consumers admitting they use SunnyD as a mixer, brand loyalists asked the company to create a product that had both. A press release noted that 85% of consumers in a blind taste test said it tastes unique, and 87% said it is different from other hard seltzers. The new RTD offering is rolling out nationwide and will be featured at select Walmart stores starting March 11. To capitalize on the growing health and wellness trend, Good Culture and the agriculture collective Dairy Farmers of America (DFA) have partnered to introduce a new product line called Probiotic Milks. Available now in 2% and whole milk varieties, each product contains 1 billion probiotic cultures per 12-ounce serving. Nearly half of people consume probiotics in some form each day, with dairy being their preferred way to obtain them, according to a 2022 survey of 16,000 consumers by Chr. Hansen.
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